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  1. is irrelevant: There is no demand for product, so there is no point in investing, so there is no point in IPOs, so the stock market is expendable.

  2. is outside the realm of plausibility. Even in Cyprus the doomsayers were proven wrong, and the Cypriot government was something out of amateur hour at the clown school. Syriza is not: It is clear from the masterful choreography on display in Greece that Athens has gamed out this scenario ahead of time and deliberately let the balloon go up on their own time table.

(Even if they had not, supermarket supply chains and distribution channels do not work that way.)

  1. has an obvious solution, that Syriza is currently demonstrating for the slow learners. Of course, that's gonna suck for the EPP-PES collaborators in the Portuguese cabinet who have been so busy throwing Syriza under the bus and will now have to eat crow. My heart bleeds for them.

  2. is another ridiculous exaggeration. There might be a small dip in the dollar/euro exchange rate, but even that should be mitigated by the skill with which Athens is managing its capital controls. And although raising interest rates in response to deterioration of the terms of the foreign trade is admittedly classic BuBa quackery, there are limits to even the ECBuBa's insanity. At the end of the day, they will not allow the spread to the Fed Funds rate to increase to several per cent. And the Fed fortunately has reasonably competent professionals like Yellen at the helm.

- Jake

Friends come and go. Enemies accumulate.
by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Jun 28th, 2015 at 05:13:29 PM EST

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